The Securities and Exchange Commission of Pakistan (SECP) has withdrawn the Companies Cost Accounting Records, General Order 2008 and issued sector-specific special orders for future. The new sector specific special orders were decided to be adopted after thorough deliberations, and specialised guidelines were made part of the new order in this regard. The SECP had issued the cost order 2008 requiring five sectors, i.e., fertiliser, thermal energy, petroleum refining, natural gas and polyester fiber to maintain the cost accounting records and have the said accounts duly audited. However, the said order was devoid of specific reporting formats and guidelines, therefore the industries, each having unique nature of cost components and reporting structure, were facing practical difficulties in complying with the requirements of said order.
These sectors interestingly, in addition to the three sectors, i.e., sugar, cement, vegetable ghee and cooking oil which are already complying with statutory requirements of maintaining and auditing cost records. The format and guidelines for fertiliser and thermal energy are at an advanced stage and special orders requiring maintenance of cost record and their audit shall be issued in the near future. The work regarding the remaining sectors, i.e., petroleum refining, natural gas and polyester fiber, has also commenced and special order in this respect shall also be issued in due course.
The SECP is actively involved in consultation with the Institute of Cost and Management Accountants of Pakistan (ICMAP) and the Institute of Chartered Accountants of Pakistan (ICAP) to develop industry-specific reporting format. Further, the SECP has also sought feedback from various industry stakeholders to bring uniformity to the cost record and cost audit report.
